India is fuming mad about the minor role of rupee in the new currency being pushed out by BRICS. Modi is pushing very hard to want BRICS to accept rupee as a major currency in BRICS. Unfortunately no one really want to have anything to do with the rupee. Russia's bad experience with the rupee is there for all to see and Putin has also decided to write off the rupee.
When Modi wanted to buy Russian oil on the cheap, he offered to pay with rupees and Putin agreed. Subsequently the amount of rupees held in the hands of the Russians surged significantly which was not a bad thing, until when the Russians wanted to use them but found out there was nothing that Russia could buy from India. India did not produce anything that is needed by the Russians. To make matter worse, for whatever left that the Russians wanted to buy from India, the Indians refused to accept rupee for payment. Yes, the rupee is not accepted as payment by the Indians. What else then can the rupee be used for? The Indians suggested that the Russians can invest the rupees in the Indian stock market. Then what? After investing in the Indian stock market, and if there are profits, assuming that the Russians accumulated a lot of rupees, what for if the Russians have nothing to buy from India and also cannot use the rupees to make payments?
What about those countries that invested heavily in India? Do they face the same problem of earning rupees and cannot use rupees to pay for Indian goods? Or they just simply reinvest all the rupees in the Indian stock exchange to earn more rupees...the big question, for what, what to do with the rupees when it cannot be used to buy Indian goods and how many things produced in India are worth buying?
Would foreign investors be in India to earn rupees for the sake of earning rupees to boast that they have so many trillions of rupees in the Indian banks, but cannot do anything about the rupees? Maybe Singapore has the answer, after all Singapore is pouring many hundreds of billions into India to earn rupees. Foreign investors are paying for their investments using good money or US$. Can they take out the same money when liquidating their investments or they have to take out only in rupees? When Indian companies or the Indian govt bought over foreign companies, they are paying in rupees! So, what to do with all the rupees, reinvest in Indian stock exchange to earn more rupees?
What do you think? I think the Indian workers in Singapore would be paid in S$ and not in rupees. Maybe Singapore can set up a consultancy on investments in India and how to take out profits or investments from Indian in other currencies and not in rupees.
Many Singapore companies are encouraged or invited to invest in India to earn rupees.
PS. India cannot dedollarise as no country would want to accept rupee for payment except for one or two countries. Not just BRICS countries but also America and the European countries. India has no choice but to use US$. No country is so stupid to want to earn rupees when India would not even want to accept rupees to pay for Indian goods.
27 comments:
The fact that the Indian rupee has depreciated so much over the last decade is another reason why no one wants to touch the rupee.
Therefore, what India wants out of BRICS about internationalizing the rupee is not what other BRICS countries are going to follow.
One solution is to pay all the zillions of Indians working overseas in rupees. Russia can sell their rupees to Singapore for them to pay the Indians working there. A everybody win situation. Maybe not for the Indians.
Right you are Anon 9.25
Very good idea! Should be invited to tea party by the PAP to be potential candidate for the next Election.
Replaced those wallflowers and "ak kow" ones.
See the Indians can send to their families in Rupees as after all they still needed to use them in their own country.
Just like RM send to Matland used in their own country.
Secondly can saddled up to Putin to buy all their Rupees maybe also a discount as last time they sold the Oil to India at a discount.
Then Putin maybe happy happy be good friends again and recommended China to be one of BRICKS, oops BRICs Partner and later Member.
One stone killed so many birdies.
Some more Sinkieland as always Commission Agents and so called Money Changing Financial Centre can same time earned big profits
No Papies MPs and Ministers cam have this wonderful idea that is out of the box.
Cheers
Because of the perpetual chronic India trade deficit, the Indian rupee is hitting all-time lows every other day.
That as Indian importers have more rupees to sell every day in exchange for foreign currencies then exporters to buy against their foreign currencies receipts.
Which foreigner would be foolish to hold the forever depreciating Indian rupees ?
Did I read that the Indians themselves do not want to be paid in rupees.
And if countries accumulate rupees to pay Indian workers and they refuse to accept, what then? Better be safe than be sorry.
Follow Putin. You can never be wrong!
Better still pay all our ministers/president/mp in rupee. This will save our gov tonnes of s$. Our Law/Foreign minsters can happily use their over 2million annual rupee pay to buy GCB in India...huat ahh...
Singapore already sanctioned Russia and will not be buying rupees for sure from Russia, unless forced by USA, the puppet master to help India. But then, that is de-dollarization also, is that not so?
I think Singapore is madly in love with rupees. They may buy up all the rupees in India and brag to the whole how many quadrillion rupees they have in their bank vaults. Collecting rupees for keepsake can become a hobby.
More Singapore companies and Singaporeans are encouraged to go to India to earn rupees, to exchange their S$ to rupees.
Selling rupees as a collector's item can raise its value. India can mint special editions as collector's item. One rupee can sell for one dollar.
Yes Anon 12.06
Have innovations like the PRCs.
Made Rapee oops Apology Rupee Fong Sui Coins for luck and prosperity.
Through India World Record for Raped so Rapee.
Made strings of Good Luck Coins and Six pieces Coins sets for under the carpet and beds.
Good also for Rapers!
Aiyo Rapes again.
Sorry, sorry
Visiting Tirumala . . .
https://www.youtube.com/watch?v=ZxPwFaJeyLM
You mean make India Great Again. India is a keen follower of USA.
Is it rupees or rapes? I am getting confused.
The Indians are going to run amok!
Cannot say like that. Deepavali is nearby.
Singapore has invested several hundred billions of S$ in India. Would these be turned into trillions of rupees when Singapore got them back? What is Singapore going to do with all the rupees?
India has invited tenders for a multi billion dollar contract to build a high speed train from Mumbai to New Delhi. So far, there is no takers. No one in his right mind would dare to bid for the project. One of the condition is for the successful bidder to put upfront, US$1b as deposit. Knowing what happened to the Japanese high speed train contract, even the Japanese have cold feet. That project has been abandoned by Japan.
This new project is like India going to make money from the successful bidder that not only have to build the high speed train for free, but still got to pay for it.
It is an extraordinary brilliant way for India to make profit and get a free high speed train.
Looks like anyone bidding for it, have to pay for it, present it to India and be responsible for maintaining it. This must be a project made in heaven for India. Those who bid for it must be of mentally unsound mind.
This is definitely an excellent long term project worth investing. Long term because by then nobody knows what was happening, everyone made the money and long gone.
What is US$1 billion? Use OPM sure got no problem. Singapore's top banks sure agree to provide the loan because India is such an attractive destination for investment for the long term.
Pay the Indian US$1b, subcontract to China to do the work. China very good and reliable in such infrastructure project. But China sure want to have money out front. Just take a long term loan from the banks to pay China.
In the end China would deliver. India got the high speed train and US$1 billion. China got the billions it asked for. And the main contractor get to own the high speed train in name and maybe can operate for 30 years or more to collect rupees. Everyone wins.
In the end nobody knows who really owns the train and benefiting from the train, just like nobody really knows who owns the bank and benefiting from the bank. Where is the profit? Who gets the profit?
Great respect to the lawyers that designed this contract. They must know that there are many hungry fund managers with a lot of OPM but no where to invest. And there are many clever Indian fund managers and experts that are available to recommend such attractive projects to the managers of OPM to invest in India. Everyone wins...gambling with OPM.
Fund managers investing long term are the smartest, as they would not be around when the scheme failed. And better still, they may collect bonuses from both parties or several parties. How not to get rich.
China may want money upfront, but can India pay? And not in rupees definitely. So, how?
By the tail of the cow. India has millions of cows with millions of tails.
Let me guess. India owns the high-speed rail system and the bragging rights. The banks provide the loan. The banks may have to assume the bad debts arising and may collapse. Some foreign banks will have to bail them out. It is a win-win situation for India and Indian Banks.
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